The big drop in gold and bonds seems to be the key to the current rather strange late rallies in stocks...
Gold has plunged...even while oil still levitates near it's recent highs...
It has been traditional for the central bank shills to beat down gold when the markets are in trouble. So this is more of the same...
But in addition, it is necessary for the FED to keep on making noises about "rising rates"...usually prefaced by "because the economy is too strong"...this satisfies the Wall Street speculators who need "happy talk" to keep the suckers buying stock!
But sooner or later, the promised higher rates will kick in...and depress corporate profits, and profits from speculation, ie the various carry trades.
Then, the whole house of card will fall...again.
Today? Probably more of the same: Depressed Gold. Talk of Higher Rates. And more stock buying by the 401k suckers as April 15 approaches...
After April 15...the plug will be pulled and the Merry-Go-Round Market will "re-cycle" it's yada-yada for the next rally.
